Tag: receipts

Go Tax Paperless

Ready to ditch your file cabinet?  Explore going paperless with your tax documents.  A great start is organizing your files using a document scanner.  Many of these have wifi capabilities and function as part of your at-home network.  Shredding old paper documents helps protect against identity theft.
Once your scanning is complete, create one file on your computer to hold these documents.  Be sure to back-up your documents in more than one place, such as on a flash drive, external drive, or a personal cloud.  Experts suggest keeping these files for up to seven years.  Make collecting this information easy by tracking receipts and invoices with simple budgeting apps and watch the clutter in your home office disappear.  Want to learn more?  Click here: How to Go Paperless in Your Home Office

 

The Dog Ate My Tax Receipts?

cash-receiptEvery year people spend hours searching madly for those few missing receipts that will substantiate a tax deduction.  An IRS audit is a real fear in the United States, one that is portrayed in television shows as a horrific experience.  But did you know that receipts aren’t always a requirement when proving your deductible expenses?  Thanks to past Broadway pioneer George M. Cohan, who paid in cash and fought the system when they denied his claims, we have the Cohan Rule.  Not the easiest rule to use, you might wind up in court, but good to know in case you ever end up in this situation.  Still, probably better to just keep saving your receipts.

No Receipts For IRS? Key Tax Case Says They’re Optional